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Robert Fico’s attempt to extend his control over both the Slovakian parliament and presidency failed Saturday, when former businessman and philanthropist Andrej Kiska (pictured above) overwhelmingly defeated Fico in the second-round runoff.

Though Fico narrowly led in the first round, Kiska won a decisive victory with 59.38% of the vote. Fico, the incumbent prime minister, won just 40.61%. Kiska, an electrical engineer by training, made his fortune in the installment payments / credit business. Eight years ago, he founded Dobrý anjel (Good Angel), a charitable organization that helps provide funds for the seriously ill.

Kiska’s victory parallels the rise of Andrej Babiš, also a former businessman, who became the deputy prime minister and finance minister of the Czech Republic after his new center-right party nearly won last October’s Czech parliamentary elections. Babiš, interestingly enough, is Slovak by birth. Though Kiska will have a relatively circumscribed role in Slovak politics, due to the largely ceremonial nature of the Slovak presidency, the emergence of figures like Kiska and Babiš could augur the rise of a new, pragmatic center-right in central Europe whose leaders come from the business world and not from the fraught economics and tainted politics (on both the right and the left of the immediate post-Cold War period).

Fico, the leader of Slovakia’s main center-left party, Smer – sociálna demokracia (Direction — Social Democracy), has led the country’s government for six of the past eight years. His defeat on Saturday will undoubtedly weaken his position as prime minister, given that his critics can argue the election was a referendum on Fico’s record. Smer won’t face voters again until 2016, but it was Fico’s choice to contest the presidential election, making his defeat on Sunday almost entirely self-inflicted. Continue reading Kiska elected president of Slovakia in setback for Fico→

In September, voters in some of Europe’s most economically stable countries (Germany, Austria and even Norway) happily turned out to support their incumbent governments. But in October, the Czech Republic’s election demonstrates that most of Europe remains under incredible social, economic and political stress.

Czech voters selected members to the lower house of the Czech parliament between two days of voting on Friday and today. The result is a fragmented mess — it’s the most fractured election result since the May 2012 Greek parliamentary election, which resulted in a hung parliament and necessitated a second set of elections in Greece just a month later.

Here are the results:

Seven different parties — ranging from free-market liberals to communists to political neophytes — won enough votes to gain seats in the 200-member Poslanecká sněmovna (the Chamber of Deputies), but it’s not clear who will be able to form a government. Voters clearly rejected the previous center-right government’s approach to austerity and budget discipline, but split over what they want to replace it. Turnout fell below 60% for the first time in over a decade.

In purely political terms, the result gives even more power to Czech president Miloš Zeman (pictured above), who came to office after winning the country’s first direct presidential election in January. On the list of ‘winners’ and ‘losers’ in this weekend’s election, perhaps no one is a greater winner than Zeman, who is entitled to appoint the prime minister and therefore, will shape the first steps in the coalition negotiations.

Since taking office, Zeman has pushed to empower the Czech presidency at the expense of the Czech parliament. After the country’s center-right government fell earlier this summer, Zeman appointed Jiří Rusnok as his hand-picked technocratic prime minister, but Rusnok’s (and Zeman’s) inability to win a vote of confidence led to this weekend’s snap elections. Rusnok has served as a caretaker prime minister for the past three months, and he could wind up serving quite a while longer if no governing coalition can be formed.

The center-left Česká strana sociálně demokratická (ČSSD, Czech Social Democratic Party) technically won the election — but just barely, and with far less support than polls showed just a month ago. Despite winning more votes than any other party, the Social Democrats won just one out of every five votes, and it’s the party’s worst result in two decades. It’s not necessarily clear that the party’s leader, former finance minister Bohuslav Sobotka, will even have the chance to form a government. There’s simply no credible case that the Social Democrats have a mandate for much of anything.

Though Zeman, a Social Democratic prime minister between 1998 and 2002, broke away from the Social Democrats only in 2007, the party remains divided over the extent to which it wants to associate with Zeman now that he holds the Czech presidency. What’s certain is that the poor result will weaken Sobotka, who leads the anti-Zeman wing of the party. That means Zeman could bypass Sobotka and appoint a friendlier Social Democrat as prime minister, such as deputy leader Michal Hašek or perhaps Jan Mládek, who was widely tipped to become the next finance minister.

The real winner in today’s election is the Akce nespokojených občanů (ANO, Action of Dissatisfied Citizens), founded in 2011 by millionaire Andrej Babiš, which nearly overtook the Social Democrats in terms of support — they will hold just three fewer seats than the Social Democrats in the new Chamber of Deputies. Babiš is one of the wealthiest businessmen in the Czech Republic, and he’s led a ‘pox-on-all-your-houses’ campaign that rejects the mainstream Czech political elite as corrupt and dishonest. Babiš owns founded Agrofert, originally a food processing and agricultural company, but now a conglomerate that’s the fourth-largest business in the Czech Republic. Though his platform is relatively nebulous, he’s called for reforms to reduce corruption and end immunity for politicians from prosecution.

Think of Babiš as a cross between former Italian prime minister Silvio Berlusconi and Georgian prime minister Bidzina Ivanishvili, perhaps, and think of ANO as a more business-friendly version of Beppe Grillo’s Italian protest group, the Five Star Movement. Given Babiš’s recent effort to buy a top Czech media company, the comparisons to Berlusconi have become particularly sharp:

A Czech tabloid recently nicknamed Andrej Babis, the new star on the Czech political scene, “Babisconi.” But, when compared with Italy’s Silvio Berlusconi, he quips: “I have no interest whatsoever in underaged girls.”

In third place is the Komunistická strana Čech a Moravy (KSČM, Communist Party of Bohemia and Moravia), which won about 15% of the vote, the party’s second-best result since the fall of the Soviet Union. The party is the heir to the old Communist Party of Czechoslovakia, which governed the country from 1968 until 1990 as a Soviet-aligned, one-party state. Though the Communists have moderated their approach somewhat in the 21st century, and though they were expected to participate in a Social Democratic-led government, the party remains unapologetically communist (unlike other former eastern far-left parties, such as Die Linke in Germany, which espouse a more moderate form of democratic socialism). Given that the base of the Czech Communists was once older, rural voters, its comeback today says much about the economic despair in the Czech Republic these days. Continue reading Czech election results: a fractured and uncertain Chamber of Deputies→

It’s been a tumultuous year in Czech politics — a surveillance scandal involving the prime minister’s love triangle brought down the government, a power-hungry president elected in the first direct presidential election earlier this year is working to claw power away from the parliament, and what’s left of the Czech right boils down to a contest between an eccentric Bohemian aristocrat and a multi-millionaire entrepreneur.

Though it sounds like the long-lost plot of a Leoš Janáček opera, it’s the backdrop to this weekend’s parliamentary elections, which should be no less dramatic than the events that shaped them.

What was once expected to be an easy victory for the country’s main center-left party, the Česká strana sociálně demokratická (ČSSD, Czech Social Democratic Party) now looks it will be a less dominant victory — so much that the Social Democrats are no longer considered a lock to lead the next Czech government. It’s the latest twist in a series of turns that could have major consequences for the economic and political development of the Czech Republic (or ‘Czechia‘ as its current president wants to call it) and its 10.5 million residents, to say nothing of the future expansion of the eurozone within central and eastern Europe. Continue reading New Czech party hopes to ride anti-corruption momentum to election gains→

In a widely anticipated move, the Czech parliament voted to dissolve its lower house yesterday, clearing the way for fresh elections in October and ending what had been a constitutional battle between president Miloš Zeman and his opponents since the collapse of former prime minister Petr Nečas over a corruption and surveillance scandal.

In a blow to Nečas’s Občanská demokratická strana (ODS, Civic Democratic Party), its one-time ally Tradice Odpovědnost Prosperita 09 or ‘TOP 09′ (Tradition Responsibility Prosperity 09), a liberal party led by former foreign minister Karel Schwarzenberg joined with the Czech Republic’s center-left parties to dissolve the 200-member Poslanecká sněmovna (Chamber of Deputies).

Zeman is likely to announce elections for October 25-26 and a formal date is expected by the end of the week.

Polls show that the Česká strana sociálně demokratická (ČSSD, Czech Social Democratic Party) holds a wide lead going into the elections, which means that its leader Bohuslav Sobotka (pictured above) is widely favored to become the next prime minister of the Czech Republic. The Social Democrats outpoll each of the Civic Democrats, TOP 09 and the Komunistická strana Čech a Moravy (KSČM, Communist Party of Bohemia and Moravia) by something like a 2:1 or 3:1 margin in most surveys of voter opinion.

Even before the Nečas government fell, however, the Civic Democrats had become extraordinarily unpopular due to the poor performance of the Czech economy and the government’s push to raise taxes and cut spending — a familiar story throughout much of Europe these days. The Social Democrats are expected to campaign on a platform of spending more funds on infrastructure instead of further budget cuts, and they may be able to do so now that the Czech economy appears to be moving from recession to growth in the second quarter of 2013. But because the Social Democrats have also committed to positioning the Czech Republic for membership in the eurozone by the end of the decade, their capacity for wide budget deficits will be constrained.

Here’s the most recent survey — an August 19 PPM Factum poll that understates Social Democrat support compared to most polls:

Sobotka, a former deputy prime minister and finance minister, has ruled out a formal governing coalition that will include the Czech Communists, but even Sobotka even concedes that a potential Social Democratic government would depend on the Communists for support for the first time since the end of the Cold War, which will result in tricky negotiations with the largely pro-EU Social Democrats and the eurosceptic Communists. But the high number of voters who remain undecided and support none of the major parties underlines the broad disillusionment among Czech voters for the entire political system.

Zeman initially appointed Jiří Rusnok as a caretaker prime minister in July, though Rusnok narrowly lost a vote of confidence earlier this month, leading to yesterday’s dissolution vote. Zeman’s decision is widely viewed as an attempt to expand the influence of the Czech presidency vis-à-vis the Czech parliament — Zeman became president earlier this year after the first direct presidential elections in Czech history, and he has argued his direct mandate entitles him to a more sweeping role. Despite the failure of the Rusnok government to win a confidence vote, Zeman has skillfully muscled his way to dominating Czech politics throughout the summer, though early elections hold risks for him as well.

Though Zeman easily took advantage of the collapse of the Civic Democrats, he faces a different and more difficult challenge with respect to the Social Democrats, a party he once led as prime minister from 1998 to 2002. But Zeman left the Social Democrats in 2007 and he now leads a small splinter group which literally calls itself the Zemanovci, or ‘Zeman’s people.’ But Zeman’s small party seems unlikely to win the 5% support necessary to enter the Chamber of Deputies, the threshold required under the Czech electoral system, which relies solely on proportional representation to determine the lower house’s composition.

Although it was caretaker prime minister Jiří Rusnok that lost today’s vote of no confidence by a margin of 100 to 93 in the Czech parliament, but the real loser is the Czech Republic’s new president Miloš Zeman — albeit only temporarily.

Zeman appointed Rusnok (pictured above) prime minister in late June after the collapse of the government of conservative prime minister Petr Nečas stemming from a sensational espionage and corruption scandal. You might expect that, as in most parliamentary systems, Zeman would have appointed a replacement prime minister who comes from the party or coalition of parties that currently wields a majority. Instead, he appointed Rusnok, an acolyte who served as Zeman’s finance minister from 2001 to 2002 and later as the minister of industry and trade under Zeman’s social democratic successor, Vladimír Špidla.

So what gives?

When Nečas resigned, it was a stroke of luck for Zeman, who took over as president only in March 2013 and who is pushing to consolidate more power within the presidency at the expense of the Czech parliament. Though both of his predecessors — playwright and freedom fighter Václav Havel nor euroskpetic Václav Klaus — played outsized roles as president due to their gravitas and outspokenness, Zeman argues that his direct mandate from the Czech people should provide him a more hands-on role in setting Czech policy (Before January’s direct election, the Czech president was indirectly elected by the parliament). By appointing his own economic adviser as prime minister, Zeman could immediately begin to shape the Czech government according to his own prerogative.

But Zeman’s presidential power grab is a longer-term project than just the Rusnok vote today, and though his attempt to install Rusnok failed, it served a very important purpose for Zeman by bringing the chief center-left party, the Česká strana sociálně demokratická (ČSSD, Czech Social Democratic Party), more fully under his influence. With polls showing that the ČSSD is set to win the next Czech parliamentary election, that’s arguably an even important goal for Zeman’s long-run designs than installing Rusnok as prime minister.

There’s not a single week that goes by in world politics that’s not amazing, and being away this week in France for a wedding proves it.

We’ve seen the longtime prime minister of Albania, Sali Berisha, concede defeat to the Albanian Socialist party leader Edi Rama after Sunday’s election (read Suffragio‘s preview of the June 23 Albanian election here), which apparently won 84 seats to just 56 for Berisha’s center-right Democratic Party, a strong majority in the country’s unicameral parliament. I’ll certainly have a bit more to add later in July when I’m back about how this could boost Albania’s chances for European Union membership — and I think it does. Rama’s pulled his party out of its communist roots into the social democratic center, and he’s now gunning to pull Albania ever closer to the center of Europe, so he’ll start off as prime minister with a strong start.

We’ve also seen the appointment of a new prime minister of the Czech Republic in Jiří Rusnok, an economic adviser to the country’s new president Miloš Zeman, which raises even greater questions about Zeman’s push to become the country’s most powerful public servant following the resignation of the country’s prime minister Petr Nečas earlier this month. Nečas, prime minister since 2010 and already unpopular as the leader of the center-right Civic Democratic Party over austerity measures and a flatlining economy, couldn’t withstand charges of eavesdropping against his chief of staff, with whom he is linked romantically. In naming Rusnok, though, Zeman is indicating that he will try to take a very large role in policymaking, though the Civil Democrats want to appoint popular parliamentary speaker Miroslava Nemcova as the country’s first female prime minister and Zeman’s former colleagues, the Social Democrats, want to hold new elections. More on this soon, too — it’s going to set the course of the relationship between the Czech president and prime minister for years to come, just over 100 days after Zeman took office following the first direct election of a Czech president. It’s a move that The Economist called ‘Zeman’s coup,’ and that’s not far from the truth.

That’s all while the Turkish and Brazilian protests continue apace (more on that this week), while the world waits in anxiety to learn about the health of South Africa’s former president Nelson Mandela and after former Pakistani president Pervez Musharraf will be tried for treason by the new government of Nawaz Sharif, the U.S. Supreme Court effectively ruled in favor of full federal rights for same-sex marriage and overturned California’s ban on gay marriage. Quite a week.

But the most important news in world politics has come from Australia, where former prime minister Kevin Rudd (pictured above) has stunningly defeated Julia Gillard as the Australian Labor Party’s prime minister on a 57-45 leadership ballot — he’s already been sworn in. More on that tomorrow too. I’m pretty biased in favor of world heads of government named Kevin, but it’s not biased to say that Rudd’s sudden return as Australia’s prime minister transforms the September 14 election from an inevitable Labor loss into something much more competitive. I’m on holiday, but I will hope to have some thoughtful analysis on what this means for Australia, Labor, the opposition Coalition, Rudd, Gillard, and September’s election within hours.

In his first 100 days in office, Miloš Zeman, the former social democratic prime minister who became the Czech Republic’s first elected president, made it clear that he intends his role to be much more powerful than a merely ceremonial head of state, pursuant to a Czech constitution that gives somewhat more power to the presidency than in neighboring countries like Germany, Poland or Italy.

But with the resignation of prime minister Petr Nečas, Zeman has an opportunity to imprint his vision of government on the Czech Republic beyond what he might have expected when he was elected in January 2013 over the aristocratic center-right foreign minister Karel Schwarzenberg.

Nečas’s resignation on Monday capped a fast-moving weeklong drama in Czech politics that has plunged the country of 10.5 million citizens into a period of uncertainty.

The crisis began last week with an unprecedentedly wide police raid of government offices that resulted in the arrests of eight government officials, including Nečas’s chief of staff, Jana Nagyová. Though corruption has long been issue in Czech government, it often goes unpunished, and when corrupt officials are charged, they are rarely arrested in such a sweeping and high-profile manner. Milan Kovanda, head of Czech military intelligence, and his predecessor Ondrej Páleník, were both arrested as well.

Nečas (pictured above) announced last week that he is divorcing Radka Nečasová, his wife of three decades and mother of his four children. But he has long been rumored to have had a romantic relationship with Nagyová, who is accused of bribery and abuse of power for allegedly having military spies follow Nečas’s wife. The widespread belief that Nagyová is believed to have committed crimes that are associated with her relationship with Nečas made his position as prime minister increasingly difficult. That, in turn, led to Nečas’s capitulation on Monday when he announced he would step down as prime minister and as leader of the Czech Republic’s main center-right party, the Občanská demokratická strana (ODS, Civic Democratic Party). Nečas will remain as a caretaker prime minister until a new government is formed.

The center-right ODS has governed in coalition with Schwarzenberg’s liberal Tradice Odpovědnost Prosperita 09 or ‘TOP 09′ (Tradition Responsibility Prosperity 09) and with various members of a third, minor conservative party, Věci veřejné (VV, Public Affairs), since the May 2010 election, though the government nearly lost power when its smallest partner Public Affairs nearly imploded in 2012 over its own corruption scandals. Despite Nečas’s resignation, Schwarzenberg’s allies want to try to form a new government under deputy ODS chairman Martin Kuba, the current trade and industry minister, that will continue to govern through the end of the current parliamentary term in May 2014.

ČSSD leader Bohuslav Sobotka, however, is calling for early elections and has promised that any new ODS-led government will meet with a vote of no confidence that Kuba is not certain to win.

The decision rests entirely in Zeman’s hands — he can give Kuba a mandate to form a new government, he can call early elections, or he could try to give the mandate to Sobotka or, more likely, a technocratic government that would be expected to do Zeman’s bidding for the next 11 months.

Though ODS holds 53 seats and TOP 09 holds 41 seats, the Česká strana sociálně demokratická (ČSSD, Czech Social Democratic Party), with 56 seats, has the greatest number of seats in the 200-seat Poslanecká sněmovna (Chamber of Deputies), the lower house of the Czech parliament. Zeman, a former ČSSD leader and prime minister from 1998 to 2002, broke with the ČSSD in 2009, and the ČSSD sponsored an alternative candidate for president earlier this year in Jiří Dienstbier Jr., a young senator, rising star and son of a famous Czech dissident. But since becoming president, Zeman has taken steps to realign himself with the ČSSD, speaking to the party’s annual congress in March 2013 and otherwise worked to bridge the gap between with the current ČSSD leadership.

Though Schwarzenberg emerged as a surprisingly strong contender for the presidency in January, the ODS candidate finished in eight place with less than 2.5% of the vote in the first round of the presidential election. The party remains relatively unpopular after implementing an all-too-familiar austerity program of tax increases, budget cuts and reductions in government services alongside an economy that contracted by an estimated 1% in 2012 and that features a rising unemployment rate that’s currently at 7.3%. The fantastic scandal over the past week that’s now ended Nečas’s career came when the ČSSD was already in a strong position in advance of the next parliamentary elections — polls show the ČSSD with a wide lead. One poll last month gave the ČSSD 24% support, with the more leftist (though increasingly a potential ČSSD coalition ally) Komunistická strana Čech a Moravy (KSČM, Communist Party of Bohemia and Moravia) far behind in second place with just 10.5% support, with TOP 09 at 9.5% support and the ODS with 9% support.

Zeman, who passed the 100-day mark of his presidency just last week, has taken an aggressive posture as president, convinced that the fact of his direct electoral mandate (unlike past presidents Václav Havel and Václav Klaus, who were elected indirectly by the Czech parliament) gives Zeman more authority to assert himself over the Czech government. He immediately set out to boost Czech ties with the European Union by flying the EU flag at Prague Castle, the presidential residence, and signing amendments to the EU Treaty of Lisbon, both of which marked a 180-degree turn from the relatively antagonistic EU policy of Klaus, his immediate predecessor. He’s also tangled with Schwarzenberg over the right to name the country’s ambassadors.

Former Czechoslovakia is very much in the news this month, with January 1 marking the 20-year anniversary of the split into the Czech Republic and Slovakia, and with the upcoming Czech presidential election.

But one of the more interesting questions in 2012 and in 2013 has been the variance between the Czech economy and the Slovak economy.

Given that the Czech Republic, which still uses the koruna as its currency, retains full monetary policy independence, and that Slovakia has been a member of the eurozone since 2009, you might expect the Czech economy to be in a better position, given that Greece, Spain, Italy and other countries in Europe have suffered greatly from being shackled through their membership in the eurozone. That seems especially true considering that the eurozone’s one-size-fits-all monetary policy was too loose for the eurozone periphery before the 2008 financial crisis and now seems, despite European Central Bank president Mario Draghi’s best efforts, too tight today.

Yet the result is exactly the opposition — the Czech economy, growing at a relatively weak 1.7% in 2011, fell into a shallow contraction in 2013, while the Slovak economy continues to grow — 3.3% GDP growth in 2011 and around 2.5% growth in 2012.

So what explains the difference? I see three dynamics in particular:

First, given that Slovakia was always less developed than what’s now the Czech Republic, there’s simply more low-hanging fruit. The Czech economy (in PPP terms) is $286 billion, while Slovakia’s economy is just $132 billion. On a per capita basis, Czechs, with a GDP per capita of just over $27,000, are still better off than Slovaks, with a GDP per capital of just over $24,000. But that’s not such an incredible gap, and so I’m not sure that necessarily explains the disparity in GDP growth.

Secondly, and this is probably related to the first point, the relatively recent entry into the eurozone has likely boosted the Slovak economy in the short term, reducing the transactions costs of trade with the rest of western Europe, upon which both Slovakia and the Czech Republic depend for much of their export growth. The Slovakian automobile industry, in particular, continues to fuel the country’s export strength.

Finally, we can look to economy policymaking — while the center-right Czech government has been focused on budget austerity, the social democratic Slovak government has been much more liberal with respect to using government as a tool to boost growth, despite the fact that both countries carry a public debt of a bit over 40% of their respective GDPs. Petr Nečas, the Czech prime minister since 2010, and the leader of the Občanská demokratická strana (ODS, Civic Democratic Party) that dominates the center-right governing coalition, has faced massive protests in the face of an austerity program that’s features not only tax increases, but painful spending cuts and reductions in government services.

Conversely, although Slovakian prime minister Robert Fico, the leader of the Smer – sociálna demokracia (Smer-SD, Direction — Social Democracy), has pursued tax increases since taking power in March 2012 on a wave of discontent over austerity. A previously flat tax of 19% will become a little more progressive, with an upper limit of 25% for the wealthiest taxpayers. Meanwhile, his government has attempted to shield the poorest Slovakians from additional spending cuts (and conceivably, they are the economic actors most likely to benefit from — and spend — each marginal euro of support from the government, thereby boosting aggregate demand). Fico has furthermore boosted budgetary funds for transport infrastructure and for equalizing educational opportunities throughout all regions of Slovakia.

It’s also worth keeping in mind that unemployment remains much higher in Slovakia — around 14%, nearly doubling the rate of between 7% and 8% in the Czech Republic, and it’s even worse among the poorer eastern parts of the country and among the disadvantaged Roma minority group.

GDP growth is not the only factor that determines the economic health of a country, and the Slovak government has not been successful in eliminating what appears to be a longstanding structural unemployment problem — at its lowest just before the 2008 financial crisis, the Slovak rate was 8.8%.

Photo credit to Kevin Lees — photo taken in Prague in December 2005.

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Suffragio attempts to bring thoughtful analysis to the political, economic and other policy issues that are central to countries outside of the US -- to make world politics less foreign to the US audience. Suffragio focuses, in particular, on those countries and regions with upcoming or recent elections.